Construction division hit worst with expected revenue reduced by 14.6%
Kier Group saw its group revenue fall to £989m in the six months to 31 December 2009, from £1.1bn the same period a year ago.
Total revenue for the group for this period fell from £1.1bn in 2008 to £1bn in 2009.
The group revealed the news in its interim results. Despite this, it said a 20.8% rise in its pre-tax profits in the six months to 31 December 2009, compared with last year, increasing from £26.4m in 2008 to £31.9m in 2009.
The group said its construction division in particular had taken a hit, with expected revenue reduced by 14.6%, to £678.3m, compared with £794.2m in 2008. This was largely due to a reduction in private sector UK contracts, together with a decline in our activities in Dubai and Romania.
Operating profit in this division fell from £19.0m in 2008, to £16.9m, and cash levels also decreased to £397.8m at 31 December, compared with £410.0m in 2009.
However, the group said its order books for its construction and support services saw a rise from £3.7bn in 2008 to £4.5bn.
our order book has grown and Kier is on over 50 construction framework agreements
Meanwhile its net cash increased by almost £48.5m - from £82.m at 31 December 2008 to £130.7m in December 2009.
Commenting on the results, chief executive John Dodds admitted having concerns on how the general election might impact on the industry.
“The uncertainties surrounding the forthcoming general election together with the public sector deficit give rise to concerns over the future levels of public sector spending,” he said.
“Notwithstanding that, our order book has grown and Kier is on over 50 construction framework agreements, both public and private, which provide comfort that we will grow our market share whilst delivering value to our clients."
Dodds is due to step down from the board when he retires at the end of March.